Giving ESA / PIP money away

W_T_F

Need advice to see if anyone has done anything wrong.

I'm on ESA income  and PIP also get HB and CT paid, my father is on state pension and no other benefits as has a bit of savings.

As I don't spend much been giving my dad about £100 a week to take care of himself out of my benefits to help him in his old age for the last 3 years as he didn't want to go into the savings.
I had just found out he's been sticking it under the floorboards all this time as he's saving it for a rainy day.
I've never gone over the £6000 cap if that matters ,  but now dad has £15000 in cash hidden away.

born_again

You need to have a word with him, as keeping cash like that is not a good idea. Getting it into a bank account is going to be fun, as they will want to know where the cash has come from.
Simply saying my son/daughter gave it to me is not going to cut it. Given this is over 2 years worth.

It would seem your father has less need of the funds than you do. So maybe treat yourself to something you need.

Can't see any issue giving it to him in the 1st place. But maybe re asses the situation. 

poppy12345

You can spend your money on anything you want to, including helping a relative out by giving them some money. Though it seems like your dad doesn't really need that extra money so you should keep it for yourself.

W_T_F

Than you for the replies.

I thought it was OK  but good to check.
My finances are going to change soon so won't have much extra money.

Might have to get him to pay the money into his account slowly and hope for the best.
I can show  cash coming out of my bank, maybe that will help if any questions are asked

poppy12345

W_T_F said:

Might have to get him to pay the money into his account slowly and hope for the best.
I can show  cash coming out of my bank, maybe that will help if any questions are asked

You said your father is not claiming any other benefits other than his state pension, therefore savings will not make any difference.

You won't need to show any bank statements because you can do what you want with your money.

xylophone

As I don't spend much been giving my dad about £100 a week to take care of himself out of my benefits to help him in his old age for the last 3 years as he didn't want to go into the savings.
I had just found out he's been sticking it under the floorboards all this time as he's saving it for a rainy day.

It would appear that Dad had enough other income not to "go into the savings" because he didn't actually use the money you gave him - he just added it to his savings (albeit under the floorboards rather than depositing it in the bank/building society....)

It would be safer for the money to be deposited in his bank or building society.

If (as is likely) the institution queries the source of the funds, he can explain that his son has been giving him £100 a week in cash for the past three years or so - if necessary you could go with him taking your bank statements to show the regular withdrawals from your account.

Presumably, if you had kept this money for yourself, you might have found your income related benefits reduced?

Muttleythefrog

poppy12345 said:

W_T_F said:

Might have to get him to pay the money into his account slowly and hope for the best.
I can show  cash coming out of my bank, maybe that will help if any questions are asked

You won't need to show any bank statements because you can do what you want with your money.

I think that's in reference to getting his (now) father's cash into their bank (i.e. proving source)..... that said bank statements may not really help because all they would show is cash coming out of someone else's account....there's no way to show that cash went to his father and is what he is attempting to deposit.... and indeed that takes us full circle to why big cash deposits may be scrutinised since cash can move about invisibly from regulated institutions and authorities and of course criminals utilise that method and often before trying to make the 'dirty money' look clean through investment or deposits.

My advice would be to just make smaller deposits over time (possibly even utilising post office - most banks you can do day to day basic banking with)... if asked where the money has come from then given no crime is involved best policy probably to be honest but questions may be asked and pattern of deposits scrutinised.... I'd be reluctant to mention how much in total he has been given and rather take a line of more dynamic gifts and depositing... but it is quite a large amount of cash to try to 'dispose of' to a bank account and maybe some of the particularly older generations are getting caught out by this.

The above advice of another poster... go with him to bank (might be useful anyway if carrying large amounts of money!) taking statements and help explain when depositing carries itself some risks I imagine in that the bank staff may be suspicious that your father may be being used as a vehicle to launder your cash for reasons invisible to them. The anxious voice in my head is the bank employee asking 'has anyone given you this cash and asked you to deposit in your bank account' and a yes reply from a perceived vulnerable customer.... make sure it's a no.

Maybe a bank operative ex or present can better advise... but bank to bank there may be differing internal checks and policies like on the cash amount above which is queried.

Any big spending like a second hand car... of course might be worth looking at cash buy option! If trusted relatives perhaps explain situation and divide up/give the cash simultaneous with their own transfers to him bank to bank.

W_T_F

Using bank statements is about getting the money into his account, with so many rules being enforced with money laundering.
Good idea about using PO  as  they don't seem to be as strict  

tifo

W_T_F said:

I had just found out he's been sticking it under the floorboards all this time as he's saving it for a rainy day.
I've never gone over the £6000 cap if that matters ,  but now dad has £15000 in cash hidden away.

ESA/PIP is not means tested so the £6,000 savings limit does not apply.

I don't know if it does for HB/CT.

Spoonie_Turtle

tifo said:

W_T_F said:

I had just found out he's been sticking it under the floorboards all this time as he's saving it for a rainy day.
I've never gone over the £6000 cap if that matters ,  but now dad has £15000 in cash hidden away.

ESA/PIP is not means tested so the £6,000 savings limit does not apply.

Income-based ESA is means-tested.

tifo

Spoonie_Turtle said:

tifo said:

W_T_F said:

I had just found out he's been sticking it under the floorboards all this time as he's saving it for a rainy day.
I've never gone over the £6000 cap if that matters ,  but now dad has £15000 in cash hidden away.

ESA/PIP is not means tested so the £6,000 savings limit does not apply.

Income-based ESA is means-tested.

Ah ok, sorry.